If in the forex world the word “broker” is used to describe all forex companies then how is one able to choose between true brokers and market makers? You first need to decide whether you want to trade with a financial institution that acts as a broker or an institution that acts as a market maker. Each has its advantages and disadvantages.
A broker will usually have no conflict of interest with its traders as all client trades are offset with a counter party, but he is not able to control execution or pricing as this is determined by the counter party that actually executes the orders. A market maker does have a conflict of interest as he will gain from client losses, but he will have control over execution which allows for larger trade sizes. Additionally, the market maker can control his own price stream.
The TFIFX model of business is a hybrid that combines the advantages of both the broker and the market maker model of business. They are a broker because they cover essentially all client positions to avoid any conflict of interest. They are a market maker because they maintain their own treasury room and every client order is executed by a human dealer. This allows flexibility in quoting larger transaction sizes (up to 200 lots per click) and maintaining fixed spreads irrespective of the amount or the market conditions.
Company Name: TFI Markets & TFI PLC
Online Since: 2006
Country: Cyprus
Regulated: Cyprus Exchange Control License EC/B/2455 & CYSEC license 117/10.
Payments/Withdrawals: Wire transfer, PayPal and credit cards
EUR/USD Spread: 3 pips
Minimum Account Size: $1,000
Leverage: up to 1:100
Minimum Position: 0.1 lot
Platform(s): Metatrader 4, TFIFX Webtrader
Mobile trading: Metatrader 4 Mobile, TFIFX Mobile Webtrader, Mobile Forex iPhone App
Demo Account: Yes (unlimited)
Support: Email, phone
Training: No
Managed Accounts: No
Languages Supported: English, Japanese
Trade what?: Forex, CFD’s
ECN/STP: No
Advantages: Metatrader 4 support, Islamic forex broker, cash back rebates
Disadvantages: High spreads
Partner Programs: Introducing broker
Learn more about TFIFX here
